Wanting to sell half a property

Twiglet0309

Oh blimey. What a caffuffle. My other post, re being a Carer is relevant to MY situation. This post, is for a friend. My mistake for putting it in first person.
Not keen on folks jumping to conclusions. I had thought these forums were for advice rather than casting aspersions. My mistake. The "Dad" here is my friends father. He wants to buy the property outright. Buying half was his idea as he wants to have as much capital as possible to spend and all those involved say GOOD LUCK TO HIM. I find Mattygroves2 assumptions rather shocking but again, my mistake for thinking this forum was for advise

Mattygroves2

Twiglet0309 wrote: »

Oh blimey. What a caffuffle. My other post, re being a Carer is relevant to MY situation. This post, is for a friend. My mistake for putting it in first person.
Not keen on folks jumping to conclusions. I had thought these forums were for advice rather than casting aspersions. My mistake. The "Dad" here is my friends father. He wants to buy the property outright. Buying half was his idea as he wants to have as much capital as possible to spend and all those involved say GOOD LUCK TO HIM. I find Mattygroves2 assumptions rather shocking but again, my mistake for thinking this forum was for advise

The problem is that what you are saying is confusing (even ignoring your other thread). If the Dad wants capital to spend then he won't get that by sinking it into half a property. What that achieves is his offspring (your friend) getting the cash and the potential tax issues I pointed out as well as problems if he needs care.

If the Dad wants to pass the money onto his offspring then that is a different scenario but that isn't the thrust of your post number 4 in response to Dan Dan's suggestion that no money need change hands.

Apologies if I have annoyed you with my conclusions but hopefully you've gleaned some useful information about deprivation of assets if nothing else.

Land_Registry

Pixie5740 wrote: »

I'm assuming that your father can afford to buy half the property outright without a mortgage. If that's the case then you can either own the property as joint tenants or tenants in common with a 50/50 split. As joint tenants the property automatically goes to the surviving joint tenant(s) when a joint tenant dies. With tenants in common anyone can be left the deceased tenant's share.

There's a form you have to complete for the Land Registry that will allow you to transfer part of the property to your father.

You cannot transfer a part share in a property registered in England or Wales I'm afraid. The Transfer of part form, which I think is being referred to here, is used when someone is selling say part of their garden, namely a physical part of the property and not a 'share'.

If you want to transfer the property into your joint names then you can do this by transferring the whole of the title (form TR1) from your sole name to your joint names. The form enables you to then indicate whether you wish to hold it as tenants in common or joint tenants.

Transferring it to the two of you, Dad's right to live there until he dies, what happens to whose % share on death of the other owner etc etc are all things you should get legal advice on as both you and your father's interests need to be considered and protected. Understanding what may happen both legally and financially should be covered.

Form filling is relatively straight forward but understanding the wider legal/financial impact of any choices made is not

G_M

As the Land Reg rep says, the process of the transfer is easy. No need for a solicitor - just follow the guide the LR Rep linked to n complete the forms.

Job done.

The issues to get your head around are

* SDLT - on sale to him
* Capital Gains Tax - on sale
* Deprivation of Assets - if care home needed
* possibly Inheritance Tax - on death
* income tax and landlord responsibilities if you rent to him rather than transfer ownership

Pixie5740

Land_Registry_representative wrote: »

If you want to transfer the property into your joint names then you can do this by transferring the whole of the title (form TR1) from your sole name to your joint names. The form enables you to then indicate whether you wish to hold it as tenants in common or joint tenants.

This is what I meant but perhaps didn't explain it the right way.

Land_Registry

Thanks Pixie5740 - guessed that was the case but wanted to emphasise the difference in the Transfer forms in case others stumbled on the thread